Regulatory Compliance for Financial Institutions

Networking Breakfast and Registration

Opening Remarks from the Co-Chairs

Safiya Adenekan
Chief Compliance Officer - Canada
Cash App

Kuno Tucker
Chief Compliance Officer
Manulife Securities

OSFI Keynote

Theresa Hinz, Executive Director, Regulatory Affairs Directorate, OSFI

Theresa Hinz
Executive Director, Regulatory Affairs Directorate
OSFI

Payments Modernization in Canada

Staying Ahead of Important Trends, Initiatives, and Regulations Moving into 2024

Peter Aziz
Senior Counsel
Torys LLP

Edgar Barbosa
Partner - Payments and Open Banking Leader, Canada
PwC

Christine Hunter
Vice President, Payments
TD

Moderator:

Mayuran Vallipuram
Director, Payments and Open Banking
PwC

Canada’s Payments Modernization initiative has been a multi-year, industry-wide program that includes the introduction of a new real-time payments rail (RTR), the first real-time payment system that supports instant, data-rich payments. Fundamental to the systems are modern rules and standards, including the introduction of the ISO 20022 global payment messaging standard, which supports payment data traveling with payments. During this panel, we will explore payments modernization in Canada, including:

• Understanding the role that ISO 20022 plays in Canada’s modernization efforts and the impact that ISO-enabled payments will have on Canada’s financial institutions (FIs)
• How FIs can leverage Real Time Rail (RTR) features
• The impact of alternative payment methods and how they are reshaping global payments and impacting FIs
• Advancing financial transparency, inclusion, and the development of the future of payment systems

Networking Break

Exploring Key Uses and Risks of AI in Compliance

Opportunities and Challenges for Financial Institutions in Canada

Sudhanshu Bahadur
Head of Technology, Global Asset Management
BMO Financial Group

Adam Garetson
Partner, Blockchain and FinTech
Gowling WLG

Carole Piovesan
Managing Partner
INQ Law
Former Policy Advisor to the Minister of Foreign Affairs
Global Affairs Canada

Moderator:

Kuno Tucker
Chief Compliance Officer
Manulife Securities

Compliance professionals can leverage AI in compliance investigations to enhance efficiency, effectiveness, and accuracy. During this panel, we will explore both considerations and opportunities that compliance leaders should keep in mind in order to ensure responsible and effective use of AI and other technologies in compliance and compliance investigations. Discussion points during this panel will include:

• Consumer protection legislation as AI regulation
• Identifying specific areas of compliance where AI can add value while detecting and preventing fraud, identifying patterns of non-compliance, automating risk assessments, and streamlining regulatory reporting requirements
• Using AI to ensure that relevant data is collected and integrated from various sources, such as internal systems, external databases, and regulatory filings, and then structured and organized to enable effective analysis
• Benefits to consumers and financial institutions
• The path forward for AI in the financial sector

Networking Luncheon

Best Practices for Partnering with Business Units

Strengthening the Culture of Compliance Across Your Organization through Effective Collaboration

Safiya Adenekan
Chief Compliance Officer - Canada
Cash App

Denise Carson
Chief Compliance Officer, BMO Asset Management Inc & BMO Investments Inc.
BMO Financial Group

Fara Sim-Francois
Chief Compliance Officer and Chief AML Officer
CITCO Bank Canada

Stephanie Mould
Head, Compliance and Privacy
Payments Canada

Kiran Thakkar
AVP - Individual Customer Compliance
Canada Life

Moderator:

Wayne Bolton
Principal, Compliance Canada
Edward Jones

Strengthening compliance across an organization requires a collaborative effort involving various stakeholders, especially business units that are directly involved in day-to-day operations. During this panel discussion, we will explore steps to effectively partner with business units to strengthen compliance. Discussion points for this panel will include:

• Ensuring that all employees within the business units understand the importance of compliance and the potential consequences of non-compliance through training sessions, workshops, and materials that explain relevant laws, regulations, and company policies
• Working closely with each business unit to identify specific compliance risks that are relevant to their operations
• Encouraging a culture of compliance within each business unit
• Working with business units to create streamlined processes that incorporate compliance requirements into their daily operations
• Guidance on how to adapt to changes in relevant laws and regulations

Managing Evolving Financial Crime Typologies

How Financial Institutions Can Stay Prepared for the Newest, Most-Sophisticated Techniques

Frank Mauti
Investigator, Financial Crimes - Ret.
Toronto Police Service, RCMP, and Ontario Provincial Police

Dwayne King
Senior Manager - Risk, Forensics and AML Advisory
Grant Thornton LLP (Canada)
Former Lead Investigator,
Asset Forfeiture Unit,
Toronto Police Service

Gary Valiquette
Assistant Crown Attorney, Guns and Gangs Task Force
Ontario Ministry of the Attorney General

Moderator:

Garry Clement
Chief Anti-Money Laundering Officer
Versabank

Anti-Money Laundering (AML) and the financial sector’s evolving typologies are continuously adapting to address new challenges posed by money laundering and terrorist financing. During this panel, we will discuss key aspects to AML and evolving typologies in the financial sector, including:

• A look at the landscape of Fraud and AML
• The latest on Productions Orders or other legal requests
• Defensive filing – reasonable grounds to suspect
• What does the landscape look like from a prosecutor’s view? A review of the definition of RGS and Money Laundering FINTRAC requirements
• PCMLTFA – new section for the offence of structuring 77.3(1) Structuring offence.
• How will that affect prosecutions?
• Law enforcement’s ability to write warrants and make arrests
• Uses and impacts of Artificial Intelligence and Generative AI

Networking Break

Incoming Regulatory and Policy Changes

A Review of New and Proposed Updates to Canada’s Anti-Money Laundering and Terrorist Financing Regime

Jeffrey Simser
Barrister and Solicitor, Legal Director
Ministry of the Attorney General

Sandy Stephens
Vice President and Chief Compliance Officer
Alterna Savings Alterna Bank

Nick Bray
Vice President
CUBE

Regulated entities need to continually review their AML and ATF compliance policies. Canada’s AML system is at an inflection point: The Proceeds of Crime (Money Laundering) and Terrorist Financing Act is up for a parliamentary review; a new structuring offence has been created, and reporting entities need to examine their business models and delivery channels to ensure compliance. Additionally, the next mutual evaluation of Canada is pending from the Financial Action Task Force. This past summer, the Department of Finance issued a policy consultation paper on a broad variety of potential changes to the AML system. What do these incoming regulatory and policy changes mean for you? What’s next? During this panel, we will explore:

• Canada’s AML and ATF Regime Strategy for 2023-2026
• Proposed amendments to the PCMLTFA
• Improving the way compliance information is shared between FINTRAC, OSFI, and the minister of finance
• How federal, provincial, and territorial governments are working on transparency and updates to key milestones of the collaboration
• Balancing the safeguarding of the integrity of Canada’s financial system while ensuring the safety and security of Canadians, and respecting Canadian individual rights and freedoms, including privacy rights

Crypto Risks, Red Flags, and Responses

Exploring Crypto Assets Regulation, Threats, and Risks on the Radar for Financial Institutions in Canada

Maude Blanchette
Intelligence Analyst, Case Assessment and Intelligence, Enforcement Branch
Autorité des marchés financiers (AMF)

Joseph Iuso
Executive Director
Canadian MSB Association

During this session, we will dive into an overview of existing requirements for crypto platforms operating in Canada and we will explore the threats observed by Securities Regulator, including:

• Securities versus FINTRAC registration
• Understanding the schemes involving social engineering
• Use of payment industry by Pig butchering scams
• Law enforcement perspective
• Risks, Red Flags and Response

Day 1 Adjourns to Sponsored Networking Cocktail Reception

Sponsored by

Networking Breakfast and Registration

Opening Remarks from the Co-Chairs

Safiya Adenekan
Chief Compliance Officer - Canada
Cash App

Kuno Tucker
Chief Compliance Officer
Manulife Securities

OPC Keynote

Philippe Dufresne, The Privacy Commissioner of Canada

Philippe Dufresne
The Privacy Commissioner of Canada
Office of The Privacy Commissioner of Canada

OSFI’s New Integrity and Security Mandate

Key Practical Considerations for Financial Institutions

Neil Lacroix
Canadian Legal Counsel & Corporate Secretary; Head of Strategic Initiatives
MUFG Bank Canada

Simon Zou
Chief Compliance Officer and CAMLO, Canada
Mega International Commercial Bank

Michael Mignardi
Vice President and General Counsel
Chief Compliance Officer (Interim)
Equitable Bank

Moderator:

Vladimir Shatiryan
Partner
Blake, Cassels & Graydon LLP

On October 13, 2023, the Office of the Superintendent of Financial Institutions (OSFI) released its draft Integrity and Security Guideline, which sets expectations for the integrity and security of federally regulated financial institutions. Earlier in June 2023, the federal financial institutions legislation was amended to require financial institutions to implement policies and procedures for protecting against threats to integrity and security and to expand OSFI’s mandate to oversee compliance with these new requirements.

The panel will explore key practical considerations for financial institutions preparing to implement the new OSFI expectations on integrity and security requirements, including on how they will impact regulatory compliance management programs, employee screening, updates to existing policies, procedures and codes of conduct, as well as foreign interference risk management tools.

Networking Break

The Future of Canadian AML/ATF Regime: Priorities and What’s on the Horizon

Justin Brown
Senior Director, Financial Crimes Policy - Governance & Transparency, Financial Sector Policy Branch
Department of Finance Canada

Charlene Davidson
Director of Financial Crimes Policy, Financial Crimes and Security Division, Financial Sector Policy Branch
Department of Finance Canada

During this panel, hear from Department of Finance Canada and FINTRAC as we explore insights on several topics, including:

• Overview of Federal Budget 2023 announcements
• Canada’s domestic and international AML/ATF priorities
• 2023 AML/ATF Regime Consultation summary and next steps

Networking Luncheon

Navigating Third-Party Risk

Identifying and Reducing Third-Party Risk While Meeting Business Needs and Complying with Rapidly Changing Regulations

Melanie Hoad
VP, Head of Legal, Risk and Compliance, Canada
CNA Canada

Marie Houde
VP, Chief Compliance Officer
Laurentian Bank

Jessica Kim
AVP, Third Party Risk Management
Canadian Western Bank

Prashant Panavalli
Principal
FORVIS

Moderator:

Claudia Fuchs
Chief Privacy Officer
CWB Financial Group

Identifying and reducing third-party risk is crucial for businesses to protect their data, reputation, and overall security. However, it must be done while still meeting business needs and complying with changing regulations. During this panel, we will discuss steps you can take to achieve this important balance:

• Conducting a comprehensive risk assessment of potential and existing third-party vendors, and implementing a thorough vendor due diligence process to ensure that you are selecting reliable and secure partners
• Considerations for data protection and privacy
• Establishing clear security requirements
• Including robust risk mitigation clauses in contracts with third-party vendors
• Continuously monitoring and reassessing third-party vendors throughout the relationship to ensure they remain compliant and secure

CDIC Insights

CDIC Insights: Key Learnings from Recent Compliance Reviews and an Overview of Key CDIC Initiatives

Emiel-Johan van der Velden
Head, Depositor Solutions, Insurance & Compliance
Canada Deposit Insurance Corporation (CDIC)

CDIC’s by-laws set out many requirements, and the various CDIC guidance add to these a multitude of expectations. During Part I of this session, CDIC will highlight some important observations following its recent compliance activities. Part II of the session will focus on key initiatives such as CDIC’s Deposit Insurance Study (launched in February 2023), CDIC’s Payout Modernization Initiative, and the implementation of its amended Differential Premiums Framework. Note that various CDIC staff will be in attendance during the conference to interact with participants regarding CDIC’s requirements.

Networking Break

FCPF Considerations

Looking Ahead at the Financial Consumer Protection Framework (FCPF) for the Next 12 Months

David Merriby
VP - Chief Compliance Officer at Amex Bank of Canada
American Express

Andrew Oakden
Chief Compliance Officer
HomeEquity Bank

Taha Patoli
Deputy Chief Compliance Officer
Coast Capital Savings

Mark Pratt
SVP, Chief Legal & Compliance Officer, Personal & Commercial Banking, Canada
BMO Financial Group

Pina Ferlisi-Sartor
AVP Compliance and Deputy COO
Laurentian Bank

Moderator:

David Chesworth
AVP & Chief Client Protection Officer, Regulatory Compliance
Canadian Western Bank

Strengthening your complaint-handling process and optimizing your whistleblowing program are essential steps in complying with the FCPF and maintaining a high standard of consumer protection. During this panel, we will explore considerations for both aspects, including:

• Enhancing consumer protection and building trust among customers and stakeholders through a strong whistleblowing program
• Establishing an independent and impartial committee to handle whistleblower reports to help avoid conflicts of interest and ensure a fair assessment of the reported concerns
• Regularly communicating the existence and effectiveness of the whistleblowing program to employees, stakeholders, and the public

Cyber Risks in Canada

The Impact of Bill C-26 on Financial Institutions and Other Federally Regulated Critical Infrastructure in Canada

Richard Larose
Senior Technical Advisor, Critical Cyber Systems Protection Act
Canadian Centre for Cyber Security

Kelly-Anne Gibson
Director, Cyber Protection Policy Division
Public Safety Canada

This panel will discuss Bill C-26, a significant piece of legislation that will require designated critical cyber systems’ operators to establish a cyber security program to protect their critical cyber systems. The Bill mandates that each designated critical cyber system operator will need to take reasonable steps to identify and manage cyber security risks and immediately report any cybersecurity incidents above a certain threshold to the Communications Security Establishment (CSE) and notify their regulator. We will explore:

• The new obligations to financial institutions introduced by the Bill C-26 and compliance requirements
• How breaches are to be reported and the required timeline for reporting and notifying
• Keeping records of how you are implementing your cybersecurity program
• Mitigations of supply-chain and third-party risks

Closing Remarks and Conference Adjourns